View all news

Global Partners Announces Ethanol Expansion Initiative with Canadian Pacific Railway

March 11, 2010
Ethanol Handling and Distribution Project at Albany Terminal Expected to be Completed in 2010
WALTHAM, Mass., Mar 11, 2010 (BUSINESS WIRE) -- Global Partners LP (NYSE:GLP) ("the Partnership") today announced a multi-million-dollar expansion and tank refurbishment project that will add 180,000 barrels of ethanol storage capacity and rail access at the Partnership's refined petroleum products terminal in Albany, New York.

Developed jointly with Canadian Pacific Railway Limited (CP) (TSX/NYSE: CP), the project, expected to be operational in 2010, includes modifications that will enable the Albany terminal to schedule the delivery of 80-car trains of ethanol. Global Partners will connect the terminal to CP's adjacent Kenwood Yard rail facility via pipeline. The terminal and rail facility are strategically located along the Hudson River, providing access to the Partnership's terminal network in the Northeast.

"This strategic project further advantages our Albany terminal as a low-cost, logistically situated asset within our supply and distribution chain," said Global Partners' President and Chief Executive Officer Eric Slifka. "The terminal and rail facility serves as an advantaged distribution point for our network of terminals throughout the Northeast."

Global Partners' estimated cost for this project is approximately $5 million. The Partnership will be responsible for enhancements to its terminal, including the refurbishment of two refined petroleum product tanks to store ethanol. CP will be responsible for construction of the rail car unloading facility at Kenwood Yard. CP has single-line haul capability from the U.S. Midwest to water on the U.S. Eastern seaboard. In a separate and complementary project, Global Partners also is converting two distillate storage tanks to gasoline storage at the Albany facility.

"Connecting our terminal to CP's Kenwood Yard provides us with another supply option into and out of the Albany terminal, thereby creating an additional revenue opportunity and further enhancing our operating efficiencies," Slifka said. "The project diversifies our product base and enables us to meet the market's growing need for ethanol in the Northeast."

These initiatives, together with earlier tank rehabilitations completed by Global Partners, will increase the storage capacity at the Albany terminal from approximately 737,000 barrels when the Partnership acquired it in May 2007 to approximately 1.2 million barrels.

About Global Partners LP

Global Partners LP, a publicly traded master limited partnership based in Waltham, Massachusetts, owns, controls and has access to one of the largest terminal networks of refined petroleum products in the Northeast. The Partnership is one of the largest wholesale distributors of gasoline, distillates (such as home heating oil, diesel and kerosene) and residual oil to wholesalers, retailers and commercial customers in the region. Global Partners LP, a FORTUNE 500(R) company, trades on the New York Stock Exchange under the ticker symbol "GLP." For additional information, please visit

Forward-looking Statements

This news release contains certain "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements are identified as any statements that do not relate strictly to historical or current facts and can generally be identified by the use of forward-looking terminology including "will," "may," "believe," "expect," "anticipate," "estimate," "continue" or other similar words. Such statements may discuss business prospects, goals, new developments and future expectations or contain projections of results of operations, financial condition and Global Partners LP's ability to make distributions to unitholders. These statements are not guarantees of performance. Although Global Partners LP believes these forward-looking statements are based on reasonable assumptions, statements made regarding future results are subject to a number of assumptions, uncertainties and risks, many of which are beyond the control of Global Partners LP, which may cause actual results to be materially different from the forward-looking statements contained in this news release. For specific risks and uncertainties that could cause actual results to differ materially from forward-looking statements, please refer to Global Partners LP's Annual Report on Form 10-K for the year ended December 31, 2008, Form 10-Q for the quarter ended September 30, 2009 and subsequent filings the Partnership makes with the Securities and Exchange Commission. All forward-looking statements included in this news release and all subsequent written or oral forward-looking statements attributable to Global Partners LP or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements speak only as of the date made, and Global Partners LP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Global Partners LP

Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief Operating Officer and
Chief Financial Officer
Global Partners LP
Edward J. Faneuil, 781-894-8800
Executive Vice President,
General Counsel and Secretary

Multimedia Files:

View all news